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Malaysia is becoming a top destination for global real estate investors. Now is a perfect time for foreigners to explore opportunities in Malaysian property, particularly through the MM2H program.
In June 2024, the Malaysian government updated the MM2H requirements. This move aims to attract high-income individuals who can contribute positively to the local economy.
Let’s dive into the MM2H new requirements and explore the benefits of investing in Malaysian real estate!
All You Need To Know About MM2H
1. What is the MM2H Program For Foreign Investors?
Good news for foreign investors!
The MM2H program offers extended visas to individuals from countries recognized by Malaysia, irrespective of race, religion, gender, or age.
2. Are You Eligible for MM2H? (As Per June 2024)
In June 2024, the Ministry of Tourism, Arts, and Culture in Malaysia introduced a new version of the MM2H package.
This updated package made it easier to apply and grouped applicants into three categories: “Platinum,” “Gold,” and “Silver”.
Let’s have a look!
MM2H Basic Application Requirements (For All Tiers)
| Category | Basic Application Information |
| Minimum Applicant Age | 25 years and above |
| Target Applicant | Nationals from countries that have diplomatic relations with Malaysia |
| Duration of Residence | Stay for at least 90 days in a year (cumulative) |
MM2H Basic Eligibility Criteria (For All Tiers)
| Category | Basic Application Information |
| Medical Benefit | Allowed to have long-term medical treatment |
| Education Benefit | Families of MM2H participants can study at any higher education institution accredited by the Malaysian Government |
| Tax Exemptions | Yes if the participant brings in funds (for example: a fixed deposit) |
| Transfer of MM2H Pass | Transfer to appointed relative upon the principal’s death |
| Eligible Family Members | – Spouse – Biological children, stepchildren, and adopted children (under the age of 21) – Children with disabilities (No age limit, medical certificate required) – Biological or adopted children, stepsons, and stepdaughters (aged 21-34) who are not employed or married in Malaysia – Parents/father-in-law |
| Permanent Resident Status | None |
**Please take note that both the first application and the renewal of the pass must be processed by the MM2H One-Stop Centre, and a health examination is required for BOTH first-time and renewal applicants.**
Eligibility Criteria According to Tier
| Criteria | Platinum | Gold | Silver |
| Fixed Deposit | Deposit a time deposit of at least RM1,000,000 in a designated bank | Deposit a time deposit of at least RM500,000 in a designated bank | Deposit a time deposit of at least RM150,000 in a designated bank |
| Participation Fee | RM200,000 | RM3,000 | RM1,000 |
| Property Value Limit | RM2,000,000 and above | RM100,000 and above | RM60,000 and above |
| Allowed to Bring Maid | Yes | No | No |
| MM2H Pass Validity | 20 Years | 15 Years | 5 Years |
| Engaged in business/investment activities and work in Malaysia | Yes | No | No |
| Renewal Fee | RM5,000 | RM3,000 | RM1,500 |
Additional Information:
- Fixed Deposit: Upon successful application, up to 50% of the fixed deposit can be withdrawn to be used in Malaysia for the purchase of property, education, medical treatment, and domestic tourism.
- Participation Fee: Non-payment by dependents.
- Property Value Limit: It cannot be sold for 10 years, but it is allowed to be resold to upgrade the property (buy a new property of higher value). Those who do not comply with the conditions may be disqualified.
- MM2H Pass Validity: Multiple entry visa, renewable after expiration. If the period is renewed after the expiration of the passport, it must be renewed together with the safe passage label (Lekat Keselamatan) on the passport.
- Renewal Fee: Includes participants’ families and is renewed every 5 years.
3. Things to know about MM2H
Can foreigners apply for a home loan in Malaysia?
It’s easy for Malaysians, but can foreigners do it too?
Yes, they can!
According to Bank Negara Malaysia (BNM), foreigners are allowed to use Malaysian Ringgit to get loans for buying houses.
So, foreigners can apply for home loans in Malaysia to buy a house, usually getting 60% to 80% of the money they need.
But, it’s a bit more complicated for foreigners than for Malaysians.
They might need to have lived in Malaysia for more than 5 years and show that they have enough money saved up and invested. The exact rules can vary depending on the bank.
Advantages and restrictions of MM2H
| Advantages | Restrictions |
| No restrictions on house purchase | Purchase of Bumiputera units/Malay reserves is not allowed |
| Any type of property (including land) can be purchased | Purchase of properties built on Malay reserved land is not allowed |
| Freehold real estate can be purchased | Not allowed to purchase affordable housing |
| Affordable house prices | Limited to price thresholds for purchasing a house |
4. Why Invest in Malaysian Real Estate?
While the attractive currency value is a significant draw, Malaysia’s real estate market offers more than just cost benefits:
1. Strategic location
Nestled in the heart of Southeast Asia, Malaysia is a gateway to the ASEAN market, making it a strategic location for business and leisure.
2. Robust infrastructure
Malaysia boasts world-class infrastructure, from highways to public transport, making commuting and connectivity seamless.
3. Cultural diversity
The rich culture in Malaysia offers a unique living experience, blending traditions, cuisines, and festivals from Malay, Chinese, Indian, and indigenous communities.
Updates on the Malaysian Currency
According to a report by Bloomberg, the Malaysian ringgit dropped as much as 0.5% to 4.7703 per dollar as of October 19, 2023, the lowest it has been for 25 years.
What caused this drop in the Malaysian currency?
1. Widening rate differential with the US
The Malaysian ringgit has been weighed down by a widening rate differential with the US.
2. Decline in exports
The Southeast Asian country also posted seven straight months of decline in exports through September, partly due to a slowdown in China, its largest trading partner.
3. Bank Negara Malaysia’s decision to pause interest-rate hikes
Bank Negara Malaysia’s decision to pause interest-rate hikes at 3% since July is also adding headwinds for the currency.
Why Malaysia’s Currency Value Matters
The strength of a country’s currency plays a pivotal role in attracting foreign investments.
A lower currency value, while it may seem like a disadvantage from a nationalistic viewpoint, can be a boon for foreign investors.
Here’s why:
1. More value for your money
Simply put, a foreigner with US dollars, British pounds, or Australian dollars will find that their money goes much further in Malaysia than in their home country.
This means larger properties, better locations, and more amenities for the same amount of money.
2. Increased purchasing power
With the current exchange rate, foreigners can enjoy a significant purchasing power advantage.
This allows them to explore premium property segments in Malaysia, which might be out of reach in their home countries.
3. Potential for higher returns
Given the lower entry point due to the favorable currency exchange, the potential ROI when the property is sold or rented out can be considerably higher.
5. Properties in Malaysia
1. MET 1 Residences @ KL Metropolis
Location: Jalan Sultan Haji Ahmad Shah, Kompleks Kerajaan, Kuala Lumpur.
Learn more here.
2. Damansara Seresta
Location: Jalan PJU 9, Persiaran Meranti, Bandar Sri Damansara, Kuala Lumpur.
Learn more here.
3. AmanAra Residences
Location: Kampung Sungai Kayu Ara, Petaling Jaya, Selangor.
Learn more here.
Want to continue browsing? Find great properties for your investment in Malaysia here!
A Golden Opportunity for Foreign Property Investors
For foreigners eyeing the Malaysian property market, now’s the time!
The combination of a favorable exchange rate and the inherent strengths of the Malaysian real estate sector presents a golden opportunity.
However, like any investment, it’s crucial to conduct thorough research. Engage with local real estate experts, understand the property laws for foreigners, and explore various locations to find the perfect fit.
This is your chance to expand your global investment portfolio! Find out more about how to invest in Malaysian property from our trusted team of real estate professionals. Drop your details below!
